A FICCI Grant Thornton study on Real Estate Regulation Act, 2016 (RERA) revealed a majority of respondents felt that it ensures transparency in real estate dealings, while 40 per cent felt that RERA implementation will ensure timely delivery of projects, eliminating non- serious players from the sector.
The FICCI Grant Thornton Report, ‘Real Estate Regulation Act, 2016 (RERA) – Are we ready?’ report, which is based on a survey also said many believed that it will increase the governance hold on the sector and will eventually lead to rise in Foreign Domestic Investments (FDI) into the sector in near future.
Another finding of the report hinted at an improved lending options that could boost sales. “Approximately 50 per cent of the respondents hope that the lending options from lenders will improve and availing finance will be easier,” the survey-based report said. The RBI has maintained status-quo on the interest rates.
A major outcome of the survey is that industry feels that the rule of depositing 70% of sales proceeds in a separate account will help in getting timely delivery of the project and eliminate fly-by-night operators in the real estate.
From the developer side, the report said that if they comply by the provisions of RERA after they get used to its provisions and complexity of its rules, it could push prices upwards in the short-term. The report further added that RERA while stabilising the sector, it will only help in expediting the completion of the on-going projects and also immunise buyers from any fraudulent practices.
Highlights of the report:
-More than 65% of the respondents feel that, going forward, transparency will increase in real estate dealings
-Close to 60% of the respondents feel that RERA will increase the governance hold in the sector and lead to increased investments.
-Approximately 50% of the respondents hope that the lending options from lenders will improve and availing finance will be easier.
-Close to 40% of the respondents feel that the implementation of RERA will help timely delivery of projects and also eliminate non- serious players from the sector.
-More than 40% of the respondents believe that maximum impact will be in the area of project planning and construction.